ML17266A428

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Petition to Intervene & Request for Hearing.Commission Should Hold Limited Antitrust Hearing.Certificate of Svc Encl
ML17266A428
Person / Time
Site: Saint Lucie NextEra Energy icon.png
Issue date: 04/07/1981
From: GARY M, KUCIK G, SWARD E E
ARENT, FOX, KINTNER, PLOTKIN & KAHN, PARSONS & WHITTEMORE
To:
NRC COMMISSION (OCM)
Shared Package
ML17266A429 List:
References
NUDOCS 8104090669
Download: ML17266A428 (16)


Text

UNITEDSTATESOFAMERICANUCLEARREGULATORYCOiP'ISSIONIntheiiatterofFLORIDAPOWER&LIGHTCOt&3QW(St.LuciePlant,UnitNo.2)DocketNo.50-389PETITIONFORLEAVETOINTERVENEANDREQUSTFORHEARINGPursuantto10CFR52.714andtheCommission'sMarch9,1981,noticeoreceiptofanapplicationfromFloridaPower&LightCompany(FP&L)forafacilityoperatinglicense,46Fed.Reg.15831,Parsons&Whittemore,Inc.(P&W)anditssubsidiary,ResourcesRecovery(DadeCounty),Inc.(RRD),jointlypetitionforleavetointerveneinthisproceedingandrecuesttheCommissiontoholdalimitedantitrusthearing,asdescribedbelow,onFP&L'sapplication.Thegroundsforthispetitionandreauestaresetforthbelowandsomeofthemareelaborateduponintheaccompanyingbrief.IDENTIYOFPETITIONERS(1)P&WisaNewYorkcorporationengagedinavarietyofindust'alactivitiesintheUnitedStatesandthroughouttheworld.OneofweactivitiesinwhichP&Wand itssubsidiariesareengagedistheconstructionandoperation.-:,-.offacilitiesforprocessingsolidwaste.(2)RRDisaDelawarecorporationthatiswhollyownedbyP&W.RRDhasrecentlycompletedthe'coKstructionofasolidwasteprocessingfacilityinDadeCounty,Florida.Itisanticipatedthatthefacilitywillprocessupto18,000tonsofsolidwasteperweek,convertcombustiblematerialsintorefuse-derivedfuel,burnthefueltoraisesteam,andgenerateelectricity.Thefacilityhasaninstallednameplateelectricgenerationcapacityofapproximately76megawatts.ItisaaualifyingsmallpowerproductionzacilitywithinthemeaningozSection201ofthePublicUtilityRegulatoryPoliciesActof1978(PURPA),16U.S.C.5796,andtheimplementingregulations,18CFRPart292(1980).INTERESTQFPETITIONERSINTHISPROCEEDING(3)Petitionersseektointerveneinthisproceedingtoprotecttheirrightsandther'ghtsosimilarlysituatedentitiesunderPURPA,thefederalantitrustlawsandSection105coftheAtomicEnergyAct,asamended,42U.S;C.52135(c).ItisPetitioners'ontentionthatifFPaLispermittedtooperateSt.LuciePlant,UnitNo.2,underthetermsoftheproposedSettlementAgreementpendinginNRCDocketNo.50-389A,

particularlySectionXrelatingtotransmiss'onservices,theeffectuationofanimportantaspectoffederalenergypolicyasreflectedinPURPAmaybefrustratedanda"situationincon--sistentwiththeantitrustlaws"maybecreatedormaintained.42U.S.C.52135{c)(5).{5)Petitionerswillbedirectlyimpactedbytheabove-describedconseauencesofimplementingSectionZoftheproposedSettlementAgreement.RRDhascompliedwiththerequirementsofPURPAandhastakenthenecessarystepsto,securethebenefitstowhichitisentitled.Ontriarch13,1981RRDnotifiedtheFederalEnergyRegulatoryCommission(FERC)thatitisaQualifiedFaciliyundertheAct.AcopyofthatnoticewasservedthesamedayonFP&LwithacoveringletterinormingFP&LthatRRD"willbeginsalesofelectricenergytoFloridaPower&Lightonorafterninetydaysfromthedatehereof."(LettertoRobertTalionofFP&LfromGeorgeE.BoyhanofRRD;AppendixA).(6)RWhasalsosought"toexplorecompetitiveopportunitiesforsalestootherelectricutilityentities."Tothatend,RRDwroteFP&LonApril3,1981andaskedittoconfirmthatFP&L"villtransmitelectricityinbehalfofRRDtopoten-tialcustomersotherthanFP&L."AsauthorityforreauiringFP&LtoprovideRRDwithtransmissionservices,RRDcitedtheantitrustlawsandtheproposedSettlementAgreement.SeeLette-fromDavidBardin,CounselforP&WandRRD,toL.ChristianHauck,FP&L'sVicePresident,LegalAffairs{AppendixB).

(7)Asdescribedmorefullybelow=an<.'-nPetitioners'ccompanyingbrief,SectionXotheproposed.SettlementAgreementaffectsPetitoners'bilitytosecure.rtsfull.-rightsunderPURPAandtogainaccesstoFPGL'.s.-.transmissiongridso'cancompetewithFPaLinthesale.ofelectricpower.TotheextentthattheoperatinglicensesoughtbyFP&LinthisproceedingincorporatesSectionX,Petitionerswillbedirectlyanddetrimentallyaffected.POTENTIALEFFECTSOFTHISPROCEEDINGONPZTITIONEPS'NTERESTSA.EffectsonPetitioners'URPArights.(8)SectionXoftheSettlementAgreement,forthefirsttimeinanNRClicensingproceeding,pu"portstoconferbenefitsonQualifyingFacilitieswithinthemeaningofPURPA.Inreality,thosebenefitsmaybeentirelyillusory;indeed,SectionXmayevenrequireRRDandotherQualifyingFac'1'tiestoabandonvaluablePUPZArightstobenefitfromthetransmissionservicesaffordedbySectionX.(9)Section210ofPURPAseekstoencourageco-genera-tionandsmallpowerproduction.ItdoessobyconferringuponQualifyingFacilitiestherighttoselltheirelecticaloutputtoanelectricutility,tointerconnectwithautil'yandtobuyatretailfromtheutilityelectricpowerneededwithinthefacility.TheimplementingregulationsexemptQualified=acilitiesrommostutility-typeregulationstoencourage

competitiveentrybyindustrialconcernsintothegenerationbusiness.CongressenactedthesePKVAprovisi.ons.toovercomethereluctanceofelectricalutilitiestodobusinesswith.suchQualifyingFacilitiesonaneconomicallyviab3.ebasis.One.oftheimportanteffectsofPURPAisthefacilitationand.encourage-4/mentofcompetitionfromnewelectricalpowersources,.(10)SectionXappearstoadvancethepr'nciplessummarizedinparagraph(9)abovebyrequiringFP&Ltotransmitpower"(5)fromanyqualifyingcogenerationfacilityorsmallpowerproductionfacil'y(asdefinedbytheFederalEnergyRegulatoryCommissionin1SCFRPart292,SubpartB)withwhichCompanyisinterconnectedtoaneighboringentityorneighboringdistributionsystem,..."Thatcommitmenttotransmitpower,however,isconditioneduponaQualifyingFacility'sforfeitureofvaluablerightsunderPURPA.Speciically,underSectionZ(a)(5)theQualifyingFacilitymustarrangetorece'veanysalesofbackuppowerandmaintenancepowerfromtheneighboringentityorneighboringdistributionsystemtowhichtransmissionservicesareprovided.ThatconditionwouldforceRRDandotherQualifyingFacilitiestoabandontheirrighttosellalloftheirelectricpoweratthebuyer'savoidedcosts,underthe"/SeveralprovisionsofPURPAhavebeenrecentlyhelduncon-stitutionalbyJudgeHaroldCoxoftheUnitedStatesDistrictCourtfortheSouthernDistrictofMississippi,Mississiaoiv.PERE,Civ.ActionNo.J79-02212(c),(Peb.19,991Petiioners'ounselhavebeeninformedthat&eSolicitorGeneralintendstoappealthatdecisiondirectlytotheSupremeCourt.

termsofPURPAandtobuyatretailfromFP&Lig:accoraance.Iwiththe3.atter'sob3.igationstoprovideallof;theenergy-neededbytheQualifyingFacilities.{11)ByplacingrestictionsontheprovisionoftransmissionservicestoQualifyingFacilitieswhichdonotapplyto"neighboringentities,"SectionXunfairlyandunrea-sonablydiscriminatesagainstQualifyingFac'lities.AlthoughPetitionersbelievethattheRRDfacilityinDade-CountyiqbothaQualifyingFacilityanda"neighboringentity-,'-'anguageofsubsectionX(a)(5)mightbeconstruedbyFP&Lasdiminishingrightsthathadbeenconferredbytheothersubsections.(12)Subsection{b)oSectionXintroducesafurtherrestrictionoftherightsconferredonneighboringentitiesandQualifyingFacilities.Thatprovisionstatesthat"Nothinginthislicenseshall.beconstruedtorequireCompanytowheepowerandenergytoorfromaretailcustomer.Althouhtheg'1restrictionshou3.dbeinterpretedonlyasalimitonretaicustomerswhicharenotinthegenerationbusiness,aclar'i-cationormodificationtothiseffectisessentia3.toassurethattheprovisowillnotforceaQualifyingFacility,exercisingitsrighttopurchasee3.ectxicityatretail,tocutatsel~offfromtheneededtransmissionsexvices.B.AntitrustEffects(13)FP&Lpossessesmonopolisticcontxoloveolovertheandeasternprovisionozran"ransmissionservicesinsouthernFior'a.

(14)SectionXoftheSettlementAgreement-issowrittenastoaffordFP&Lunreasonableopportunities--toconstrue-.:theprovisionscontainedthereininaway.Matwould.defeat.theirprocompetitiveobjective,therebymaintainingFP&L'monopoly.powerovertransmissionservices.(15)TheunreasonableandunfairdiscriminationbetweenQualifyingFacilitiesandothergeneratorsofelectricitydescribedinparagraph(13.)above,wouldplacePetitionersandothersimilarlysituatedentitiesatacompetitivedisadvantage.(16)Subsect'onZ(a)oftheSettlementAgreement,particularlyconditions(3),(4),and(5),giveFP&LexcessivediscretionarylatitudeindenyingPetitionersandothersimilarlysituatedentitiesaccesstoFP&L'stransmissiongrid,therebyPenablingFP&LtopreventPetitionersandothersfromsellingtheirgeneratedelectricitytomunicipalutilities.(17)Theeffectsdescribedinparagraphs(13)through(16)abovearemorefullyanalyzedintheaccompanyingbrief.TheysupportPetitioners'ontentionthatimplementationoftheSettlementAgreementaswrittenwouldsignificantlychangeFP&L'sactivitiesandproposedactivitieswithinthemeaningofSection105coftheAtomicEnergyAct,asamended,42U.S.C.52135(c)(2),requiringtheCommissiontoholdanantitrusthearingatthistime.Thesenewanticompetitiveactivitiesareparticularlyinvidioussince,onceapproved,,theywillappeartohavethesanctionofNRCandtheJusticeDepartment.Thatfactcoupled withthesuperficialimpetustocompetitionaffordedbythe':--.SectionXtransmissionprovisionsmakeitcriticalthat-the-.;positionofQualifyingFacilitiesunderPKUA.-betakenintoaccountbeforetheoperatinglicenseissues.NATUREOFPETITIONERS'IGHTSUNDERTMATONICENERGYACTTOINTERVENE(18)Petitionersareentitledtointerveneinth'sproceedingpursuanttoSections105cand189oftheAtomicEnergyAct,asamended,42U.S.C.552135(c),2239.Section.189statesthat"theComm'ssionshallgrantahearingupontherequestofanypersonwhoseinterestmaybeaffectedbytheproceeding,andshalladmitanysuchpersonasapartytosuchproceeding."Asdescribedinparagraphs(8)to(17)above,Petitioners'UR?Arightsandtheircompetitiveinterestsw'lbedirectlyimpactedbytheissuanceofanoperatingfacil'ylicensecontaining,orsubjectto,theconditionsoftheSett'e-mentAgreement.Therefore,theyshouldbepermittedtointer-veneandbeheardtoprotectthoserightsandinterestsandthe*/rightsandinterestsofothersimilarlysituatedentities.(19)Section105coftheAtomicEnergyActprovidesanadditionalstatutorybasisforinterveningandseekinga~/ThestaffoftheFloridaPublicServiceCommissionhasestimatedthattheFloridacapacityforQualifyingFacilityprojectsapproaches2700megawatts.

lissues.Thatsectionrequiresthatanhearingontheantitrustissues.4ldattheoperat'nglicensestageifantitrustreviewbe.ea'nthelicensee'sactivitiesorproposed"s'gnificantchangesineicei~~ttothepreviousrevaewyactivatzeshaveoccurredsubsequenoconnectionwit.t:heCommission...inconnthAttorneyGeneralandthee~~~efacil'ty."Thesignifacantheconstructionpermitforthefaci'.tbFPSL'sintendedamplemmentationofthechangesbroughtaboutydtheireffectsuponPetitioners,asSettlementAgreementandtheareehs(13)to(17aove7)bveandintheaccompany-describedinparagzaptheriht-toint:ervenefortheingbrae,gib'ivePetitionerstherigananaandparticipatingin,tblishingtheneedfor,anpurposeofesait:reviewunderSection105c.secondantitrusrSOFPROCEEDINGASTORFICHSHTOINTERVENEPETITIONERSNIektointerveneintheinstant(20)PetitionersseektoanervtingtheLicensingthelimitedpurposeofassasiroceedingforeipuatefullytheconsequencesofBoardandethCommissiontoevaluatefuyseent.InsedSettlementAgreement.'onXoftheproposeeimplementingSectitoJeheardastoSectionZ'articuar,tonthee-p1PetitionerswishtoJeeartonthePUP>Arightsandcomp-tialldetrimentalimpactonthefPetitionersandothethersimaarytitiveinterestsoeQualifyingFacilities.notbelievethatatrial-type{21)Petitionersdonoteiev"h~ing1reuiredhere.Theyare"h~ingisnecessariyreqantitrusthearing

10preparedtoaccepttherecordasdevelopedtodate,andwouldnotaskthatitbereopened.Petitionersseek.onlytosupple-mentthat.record,inanymannertheCommissiondeemsappropriate,topresenttheirevidencetotheCommissionand-toarguetheir.positionbaseduponthesupplementedrecord..Petitioners'.evidencewillincludePP&L'sanswerto,,thelettermarkedas'ppendixB,whichtheyhaverequestedbyApril17.(22)Astheaccompanyingbrief'pointsout,Petitioners'URPArightsareinterrelatedwiththeir'ntitrustconcerns.ThePURPAr'hts,however,canbe.separatelyconsideredandprotectedwithoutanantitrusthearing,iftheCommissionissoinclined.OneofPetitioners'ontributionsasintervenorswillbetodemonstratetheinconsistenciesbetweentheSettlementAgreementandtherightsaffordedbyPURPA.(23)SincePetitioners'nterestintheproceedingislimitedtoSectionXoftheAgreement,theirrigntscouldbeeasilyandefficientlyprotectedwithoutunduedelayinthe'ssuanceofZP&L'soperatinglicense.

11-CONCLUSXONThispetitiontointerveneshouldbegranted,andanorderallowinginterventionshouldbeentered.Alimitedanti-N*trusthearing,asdescribedabove,alsoshouldbeordered.Respectfullysubmitted,GeorgeR.KuciNarcGaryE3.len.SwardArent,Pox,Kintner,Plotkin6Kahn1815HStreet,N.N.washington,D.C.20006(202)857-6000April7,3.983.CounselforPetitioners